"You have financial cancer": Dave Ramsey weighs in on a pharmacist's 400k+ student loan bill

[Wickett]

Just put in my final student loan payment today. 170k in debt paid off. Time for my Dave Ramsey debt free scream.

---

Members don't see this ad.

 

[mentos]

Just put in my final student loan payment in today. 170k in debt paid off. Time for my Dave Ramsey debt free scream.

Congrats! How long did it take? Did you refinance?

 

[Wickett]

Congrats! How long did it take? Did you refinance?

Thanks! I started paying into it Jan-Feb 2017. I didn't refinance in order to keep federal protections and because I was already paying it off as quickly as I could.

 

[awval999]

Thanks! I started paying into it Jan-Feb 2017. I didn't refinance in order to keep federal protections and because I was already paying it off as quickly as I could.

Over $5,000 a month? Impressive.

 

[mustang sally]

Same here, I’m a few years away. All my ducks are in a row (so the recent “shocker” articles re: PSLF are irrelevant).

Now, this mortgage though...

How many years left for you? All my paperwork says eligible in 2023 (fingers crossed!).

 

[Sparda29]

Same here, I’m a few years away. All my ducks are in a row (so the recent “shocker” articles re: PSLF are irrelevant).

Now, this mortgage though...

What's the deal about PSLF?

My loans had actually fallen into default so I'm in the "rehabilitation" program right now. My plan is to get in on PSLF as soon as possible. Do I qualify since I work for a "nonprofit" hospital?

What I'm confused about with Ramsey is that he says to pay off the student loans and not to rely on PAYE or PSLF. Under the PAYE program I would only pay out a total of $203k over 25 years versus my balance that has ballooned to over $500k because of interest and late fees, etc.

After I pay off my credit cards, if my only debt is the student loans. Under both plans, the monthly payment would be about $700 based on my full-time job income. If I can limit my car budget (car payment, insurance, gasoline, tolls) to under 1k a month, I'd have about 5300 left over, then say rent is 2k a month, grocery budget of 400 a month, entertainment/eating out budget of 400 a month, I'd have 2500 left over every month assuming I don't pick up any cash shifts. Wouldn't I be better off throwing that 2500 into savings instead of towards the student loans? If I were to throw $3200 a month at the student loans, it would be paid off in 13 years.

As opposed to saving 2500 a month for 4 years into a 120,000 for a down payment on a house. Say I buy a two family home and rent out the other side for whatever the mortgage payment. Save up again for 3 years and repeat and rent it out, repeat, etc. Wouldn't I be better off with this strategy?

This is all excluding my wife who is a PharmD, she still has to take the FPGEE, TOEFL, NAPLEX, MPJE, and Compounding exams. I definitely have the hookups to get her a job once she's licensed. When that happens, we can throw her income completely at savings/investments.

 

[mustang sally]

What's the deal about PSLF?

My loans had actually fallen into default so I'm in the "rehabilitation" program right now. My plan is to get in on PSLF as soon as possible. Do I qualify since I work for a "nonprofit" hospital?

What I'm confused about with Ramsey is that he says to pay off the student loans and not to rely on PAYE or PSLF. Under the PAYE program I would only pay out a total of $203k over 25 years versus my balance that has ballooned to over $500k because of interest and late fees, etc.

After I pay off my credit cards, if my only debt is the student loans. Under both plans, the monthly payment would be about $700 based on my full-time job income. If I can limit my car budget (car payment, insurance, gasoline, tolls) to under 1k a month, I'd have about 5300 left over, then say rent is 2k a month, grocery budget of 400 a month, entertainment/eating out budget of 400 a month, I'd have 2500 left over every month assuming I don't pick up any cash shifts. Wouldn't I be better off throwing that 2500 into savings instead of towards the student loans? If I were to throw $3200 a month at the student loans, it would be paid off in 13 years.

As opposed to saving 2500 a month for 4 years into a 120,000 for a down payment on a house. Say I buy a two family home and rent out the other side for whatever the mortgage payment. Save up again for 3 years and repeat and rent it out, repeat, etc. Wouldn't I be better off with this strategy?

This is all excluding my wife who is a PharmD, she still has to take the FPGEE, TOEFL, NAPLEX, MPJE, and Compounding exams. I definitely have the hookups to get her a job once she's licensed. When that happens, we can throw her income completely at savings/investments.

If you work full-time at a non profit hospital (and you are on one of the qualifying income based repayment plans), then you should qualify for PSLF. Fill out the employment certification form and continue to do so annually.

They will let you know if your employment qualifies. And If you previously made payments that would count towards your 120 payments (ie. if you were already on an income based repayment plan while you worked at a non-profit), then they will let you know how your progress is going.

 

[JustFillIt]

What's the deal about PSLF?

My loans had actually fallen into default so I'm in the "rehabilitation" program right now. My plan is to get in on PSLF as soon as possible. Do I qualify since I work for a "nonprofit" hospital?

What I'm confused about with Ramsey is that he says to pay off the student loans and not to rely on PAYE or PSLF. Under the PAYE program I would only pay out a total of $203k over 25 years versus my balance that has ballooned to over $500k because of interest and late fees, etc.

After I pay off my credit cards, if my only debt is the student loans. Under both plans, the monthly payment would be about $700 based on my full-time job income. If I can limit my car budget (car payment, insurance, gasoline, tolls) to under 1k a month, I'd have about 5300 left over, then say rent is 2k a month, grocery budget of 400 a month, entertainment/eating out budget of 400 a month, I'd have 2500 left over every month assuming I don't pick up any cash shifts. Wouldn't I be better off throwing that 2500 into savings instead of towards the student loans? If I were to throw $3200 a month at the student loans, it would be paid off in 13 years.

As opposed to saving 2500 a month for 4 years into a 120,000 for a down payment on a house. Say I buy a two family home and rent out the other side for whatever the mortgage payment. Save up again for 3 years and repeat and rent it out, repeat, etc. Wouldn't I be better off with this strategy?

This is all excluding my wife who is a PharmD, she still has to take the FPGEE, TOEFL, NAPLEX, MPJE, and Compounding exams. I definitely have the hookups to get her a job once she's licensed. When that happens, we can throw her income completely at savings/investments.

You know - I find you bizarre and difficult to agree with, however I do agree with you here.

I appreciate Dave Ramsey and the direction he gives but I have decided to “do my own thing” when it comes to student loans.

I do t even look at my student loans as debt anymore. I honestly could care less about how much I owe. I am on the income driven plan and the way that I look at it is - for the next 20 years, I simply owe 10% of my discretionary income to the government. I just look at it is a reduction in my income. All other debts I pay off aggressively, but when it comes to student loans I just ignore it and give my small payment every month. People seem to not understand that if you have a healthy litter of children, they all count as deductions to the payment amount. For the entire year of 2019 I paid 180 dollars a month with a 120k yearly income..

Why is this strategy not widely understood? Is it considered “irresponsible”? Anyone who thinks I am “irresponsible” can lay a wet one on my *** for all I care.. I’m going to Disneyland this year. Dave Ramsey would tell me to eat beans and rice and pay off my student loans.. I have decided to whale on the ribeyes and take advantage of any benefit I can.. it’s the American dream baby...

 

[BMBiology]

You know - I find you bizarre and difficult to agree with, however I do agree with you here.

I appreciate Dave Ramsey and the direction he gives but I have decided to “do my own thing” when it comes to student loans.

I do t even look at my student loans as debt anymore. I honestly could care less about how much I owe. I am on the income driven plan and the way that I look at it is - for the next 20 years, I simply owe 10% of my discretionary income to the government. I just look at it is a reduction in my income. All other debts I pay off aggressively, but when it comes to student loans I just ignore it and give my small payment every month. People seem to not understand that if you have a healthy litter of children, they all count as deductions to the payment amount. For the entire year of 2019 I paid 180 dollars a month with a 120k yearly income..

Why is this strategy not widely understood? Is it considered “irresponsible”? Anyone who thinks I am “irresponsible” can lay a wet one on my *** for all I care.. I’m going to Disneyland this year. Dave Ramsey would tell me to eat beans and rice and pay off my student loans.. I have decided to whale on the ribeyes and take advantage of any benefit I can.. it’s the American dream baby...

Because at the end of 20 years, you will be hit with a huge tax bomb. Any amount left over is considered taxable income. So, enjoy your ribeyes. You are living on borrowed time.

 

[Sparda29]

Because at the end of 20 years, you will be hit with a huge tax bomb. Any amount left over is considered taxable income. So, enjoy your ribeyes. You are living on borrowed time.

From my calculations, the tax bomb would be between 150000-250000 (I don't know how much higher the balance would climb via interests). This is assuming I'm not contributing to IRA or 401k which I would be.

If I have a healthy savings account and some properties owned, it should be easy to pay it off and it would still be less than if I were paying the whole balance.

 

[JustFillIt]

Because at the end of 20 years, you will be hit with a huge tax bomb. Any amount left over is considered taxable income. So, enjoy your ribeyes. You are living on borrowed time.

Gotcha - yea thanks BM....

Oh by the way.. I just bought a new home. We weathered the turbulence that was 2019 and made great decisions all the way around. We move in March of 2020. It is going to be so awesome. I even convinced the current owner to renovate the kitchen and bathroom according to a specified budget and my discretion.

The back porch even has a designated grill spot for all of the ribeyes I’m going to char...

Let’s just say I have 150k left over that is forgiven. That is taxed at 40%?? Piece of cake...

 

[BMBiology]

Gotcha - yea thanks BM....

Oh by the way.. I just bought a new home. We weathered the turbulence that was 2019 and made great decisions all the way around. We move in March of 2020. It is going to be so awesome. I even convinced the current owner to renovate the kitchen and bathroom according to a specified budget and my discretion.

The back porch even has a designated grill spot for all of the ribeyes I’m going to char...

Let’s just say I have 150k left over that is forgiven. That is taxed at 40%?? Piece of cake...

If you only have 150 k left after 20 years then that means you would have paid a lot of interest. That is good for all. You get your ribeyes. Taxpayers get a big chunk of interest from you.

 

[JustFillIt]

If you only have 150 k left after 20 years then that means you would have paid a lot of interest. That is good for all. You get your ribeyes. Taxpayers get a big chunk of interest from you.

Oh good - so we are on the same page.

Yea I agree, we all win.. and I didn’t have to frantically pay off my student loans. I got to have my cake and eat it too.

 

[JustFillIt]

I would also add that I am willing to bet that the “tax bomb” will be eliminated via legislation over the next 15 years.. It is almost inevitable considering the fact that the majority of voters will be of the “student loan crisis” generation...

This can easily be justified in the fact
That 90% of those that pay income driven plans on a monthly basis for 25 years will pay off the principle of their student loan.

I would not be opposed to eliminating student loan interest altogether and moving toward a “fee system”. I have heard of proposals that float the idea of a flat fee for semester loans.

 

[BMBiology]

I would also add that I am willing to bet that the “tax bomb” will be eliminated via legislation over the next 15 years.. It is almost inevitable considering the fact that the majority of voters will be of the “student loan crisis” generation...

This can easily be justified in the fact
That 90% of those that pay income driven plans on a monthly basis for 25 years will pay off the principle of their student loan.

I would not be opposed to eliminating student loan interest altogether and moving toward a “fee system”. I have heard of proposals that float the idea of a flat fee for semester loans.

Why stop at student loans? How about other forms of debt discharge like medical, credit card? Why should they have to pay taxes and not you? How about those people who have already paid off their student loans? You think they would be willing to pay additional taxes so you can get a free ride?

Debt is never erased. It gets transfer. Bernie wants to tax stock transactions to pay for student loan forgiveness. That means people who have a 401 k would be paying for it. You think they would just sit there and pay your debt? You think the financial industry would just sit on its hands and do nothing? Keep dreaming.

 

[JustFillIt]

Why stop at student loans? How about other forms of debt discharge like medical, credit card? Why should they have to pay taxes and not you? How about those people who have already paid off their student loans? You think they would be willing to pay additional taxes so you can get a free ride?

Debt is never erased. It gets transfer. Bernie wants to tax stock transactions to pay for student loan forgiveness. That means people who have a 401 k would be paying for it. You think they would just sit there and pay your debt? You think the financial industry would just sit on its hands and do nothing? Keep dreaming.

I’m just going to say that a lot of things happen in our legislature that “the masses” do nothing about. I maintain my position that I could see this happening with very little to no resistance.

Just because you have an opinion does not mean that it will come to fruition.. You have a respectable opinion, however larger cultural sentiment is against you. You are paddling upstream and will eventually get washed away.

 

[BMBiology]

I think you will be terribly disappointed. As you can see below, graduate degree holders are the ones who have massive student loan debt. So forgiving all debt would only benefit a small fraction of the population....politicians know that.

“Households with at least one advanced degree carried 51% of overall student-loan debt in 2016.”

How grad schools became the hidden culprit behind America's student-debt crisis

Over half of the massive US student-loan debt comes from graduate schools, and it's a sign master's degrees aren't the path to wealth they used to be.

www.google.com

 

[JustFillIt]

I think you will be terribly disappointed. As you can see below, graduate degree holders are the ones who have massive student loan debt. So forgiving all debt would only benefit a small fraction of the population....politicians know that.

“Households with at least one advanced degree carried 51% of overall student-loan debt in 2016.”

How grad schools became the hidden culprit behind America's student-debt crisis

Over half of the massive US student-loan debt comes from graduate schools, and it's a sign master's degrees aren't the path to wealth they used to be.

www.google.com

I never said “forgiving all debt” nor would I be “terribly disappointed” either way. I am arguing that I foresee the forgiveness of the “tax bomb at the end of income based repayment.

I am expressing my opinion based on the cultural sentiment which I have observed.

 

[BMBiology]

I never said “forgiving all debt” nor would I be “terribly disappointed” either way. I am arguing that I foresee the forgiveness of the “tax bomb at the end of income based repayment.

I am expressing my opinion based on the cultural sentiment which I have observed.

Getting rid of the tax bomb would only benefit a small fraction of the population since most people with an undergrad degree would have paid off their student loans if they are on income based repayment. Politicians know this. It won't happen. You are biased and are too optimistic.

 

[confettiflyer]

Dave Ramsey is for the peasants.

People with our levels of income (and associated debt) should use our brains and find better advice.

He’s waaaaayyy out of his league trying to coach graduate/professional degree holders. He should stick to his bread and butter: middle class, debt and government averse Americans living outside of the coasts who need to be told what to do.

His obsession with cutting out $5 lattes is hillarious...the proper advice for people like us is to not cut insignificant expenses, it’s to increase our incomes.

But if that kinda stuff turns you on and saving $1825/yr on $5 lattes will significantly turn your budget around and find your retirement....be my guest!


Sent from my iPhone using SDN

 

[confettiflyer]

How many years left for you? All my paperwork says eligible in 2023 (fingers crossed!).

Also late 2023 from my calculations!


Sent from my iPhone using SDN

 

[Sparda29]

Why stop at student loans? How about other forms of debt discharge like medical, credit card? Why should they have to pay taxes and not you? How about those people who have already paid off their student loans? You think they would be willing to pay additional taxes so you can get a free ride?

Debt is never erased. It gets transfer. Bernie wants to tax stock transactions to pay for student loan forgiveness. That means people who have a 401 k would be paying for it. You think they would just sit there and pay your debt? You think the financial industry would just sit on its hands and do nothing? Keep dreaming.

Wrong. The federal loans were already appropriated by Congress, and disbursed. It is perfectly constitutional of Bernie simply cancels the debt via executive order. He's not asking Congress to cut another check to pay the banks. (If this was about private loans, then yes he would have to ask Congress to appropriate the money.)

Taxing stock transactions is something that should have been done a long time ago. This money shouldn't come out of the pockets of the investors but from the pockets of the brokers and firms who take absurd commissions. Increasing the estate tax is something that should have been done a long time ago. You know what pisses me off? Seeing stock brokers and real estate brokers and landlords who make more money than doctors and pharmacists.

 

[BMBiology]

Wrong. The federal loans were already appropriated by Congress, and disbursed. It is perfectly constitutional of Bernie simply cancels the debt via executive order. He's not asking Congress to cut another check to pay the banks. (If this was about private loans, then yes he would have to ask Congress to appropriate the money.)

Taxing stock transactions is something that should have been done a long time ago. This money shouldn't come out of the pockets of the investors but from the pockets of the brokers and firms who take absurd commissions. Increasing the estate tax is something that should have been done a long time ago. You know what pisses me off? Seeing stock brokers and real estate brokers and landlords who make more money than doctors and pharmacists.

You need to put down your pipe. What you said doesn’t make any sense. If Bernie can just use executive order, then why did he propose a way to pay for it? And hell no to his plan. Why should I or any other American use our retirement fund to pay for your student loans? You have been making 6 figures as a pharmacist but yet you still defaulted on your student loans. That is your choice. Man up and take some responsibility.

Bernie: 5 Key Questions For Student Loan Forgiveness

Here are 5 key questions about the student loan forgiveness proposals from Bernie Sanders and Elizabeth Warren.

www.google.com

2. Who will pay for student loan forgiveness?

Sanders will fund his student loan forgiveness plan through a new tax on financial transactions (a “tax on Wall Street”), he expects could raise more than $2 trillion over the next 10 years. The tax plan will include a 0.5% fee on all stock trades, a 0.1% fee on all bond trades and a 0.005% fee on all derivatives trades. While “Wall Street” financial institutions may pay some of these taxes, absent some exemption, individual investors ultimately would also pay these taxes.

Warren’s campaign proposal – which preceded her proposed legislation – included an Ultra-Millionaire Tax that would include a 2% annual tax on the 75,000 families in the U.S. who have at least $50 million in wealth. While this provision doesn’t appear in her proposed legislation, a new tax to fund national student loan forgiveness likely is a non-starter for congressional Republicans.

 

[Corytrade]

Bunch of broke ass people in this thread talking like they have money. Dave Ramsey is actually ideal for this group, because they think they are "above the middle class" but in reality are poorer. A plummer might only make $65k a year, but he just has a $10k car loan to worry about. We got people in here making $120k a year acting like $250k in debt is better sitting around than being paid off. Full lulz.

 

[JustFillIt]

Bunch of broke ass people in this thread talking like they have money. Dave Ramsey is actually ideal for this group, because they think they are "above the middle class" but in reality are poorer. A plummer might only make $65k a year, but he just has a $10k car loan to worry about. We got people in here making $120k a year acting like $250k in debt is better sitting around than being paid off. Full lulz.

My guess is you are a child with no children of your own and very little responsibility other than your job..

I’ll bet one of your top 5 priorities is to develop a thigh gap. If all I was worried about was having a thigh gap I may be as snide as you but I have come to the realization that there is more than 1 road to the top of the mountain.

Kids these days.... Don’t you have a Hannah Montana concert to go to or something?

 

[mentos]

Bunch of broke ass people in this thread talking like they have money. Dave Ramsey is actually ideal for this group, because they think they are "above the middle class" but in reality are poorer. A plummer might only make $65k a year, but he just has a $10k car loan to worry about. We got people in here making $120k a year acting like $250k in debt is better sitting around than being paid off. Full lulz.

A plumber makes way more than 65k. I just got a new boiler and my plumber charged me $10,600. The parts cost $7,000 and the rest went into his pocket. Not bad for a couple days worth of work. Oh he just bought a new car too while I'm driving an 11 year old Honda. He went to vocational high school and graduated with no debt. He has so much work lined up that he has to refuse work cause he can only do so much at a time. I found him by word of mouth of Facebook, he doesn't even need to pay for marketing.

 

[Sparda29]

Man, I should have been smart like the med students/pharm students who used the extra student loan money to make an initial weed/cocaine buy and then sell enough to make like $500k profit and then quit.

I know one guy who purchased $30k worth of Apple stock every year using excess student loan money in 2008-2011. He sold it all in the summer of 2018.

 

[Corytrade]

My guess is you are a child with no children of your own and very little responsibility other than your job..

I’ll bet one of your top 5 priorities is to develop a thigh gap. If all I was worried about was having a thigh gap I may be as snide as you but I have come to the realization that there is more than 1 road to the top of the mountain.

Kids these days.... Don’t you have a Hannah Montana concert to go to or something?

^wants me to go down the rabbit hole with them.

Just fyi I have children, and a home (well equity), and no student loan debt, and no one paid for any of my tuition except myself. If I was fired tomorrow I wouldn't be scared, because I'm not an idiot with money.

 

[Corytrade]

Man, I should have been smart like the med students/pharm students who used the extra student loan money to make an initial weed/cocaine buy and then sell enough to make like $500k profit and then quit.

I know one guy who purchased $30k worth of Apple stock every year using excess student loan money in 2008-2011. He sold it all in the summer of 2018.

What was apples return per year, probably 9%? What's student loan interest, 7%?

 

[rxkrafted]

Man, I should have been smart like the med students/pharm students who used the extra student loan money to make an initial weed/cocaine buy and then sell enough to make like $500k profit and then quit.

I know one guy who purchased $30k worth of Apple stock every year using excess student loan money in 2008-2011. He sold it all in the summer of 2018.

Its a good idea when you can predict the outcome but the risk is too high for my comfort. You'd need to beat at least 6.5% return (more if you took gradplus loans) and hope that you don't get caught by DOE for legal action.

 

[BMBiology]

My guess is you are a child with no children of your own and very little responsibility other than your job..

I’ll bet one of your top 5 priorities is to develop a thigh gap. If all I was worried about was having a thigh gap I may be as snide as you but I have come to the realization that there is more than 1 road to the top of the mountain.

Kids these days.... Don’t you have a Hannah Montana concert to go to or something?

You can’t blame it on having kids. Many of us on this forum have kids. You made some poor financial decision too....like losing your job and selling your house (6% selling cost) and therefore, forgoing appreciation (another 4%). You are going to need to pay another 2% in closing cost when you buy another house so that is a total of 12% in equity gone. But yeah, keep on eating your ribeyes and keep on telling yourself everything is going to be alright.

 

[BMBiology]

People who can’t delay gratification tend to have lower intelligence:

What Is Your Nervous System?

Everything you think, feel, and do is controlled by your nervous system. Learn how it works and what kinds of things can go wrong.

www.webmd.com

 

[lord999]

Dave Ramsey is for the peasants.

People with our levels of income (and associated debt) should use our brains and find better advice.

He’s waaaaayyy out of his league trying to coach graduate/professional degree holders. He should stick to his bread and butter: middle class, debt and government averse Americans living outside of the coasts who need to be told what to do.

His obsession with cutting out $5 lattes is hillarious...the proper advice for people like us is to not cut insignificant expenses, it’s to increase our incomes.

But if that kinda stuff turns you on and saving $1825/yr on $5 lattes will significantly turn your budget around and find your retirement....be my guest!


Sent from my iPhone using SDN

Funny, I always have a policy of paying for lunch. You'd be surprised at how cheap a bribe that is to get someone's time or to motivate performance out of your inferiors, but scarily, how influential the idea of breaking bread is and how difficult psychologically it is to antagonize someone who fed you. It works with other primal functions as well.

 

[JustFillIt]

You can’t blame it on having kids. Many of us on this forum have kids. You made some poor financial decision too....like losing your job and selling your house (6% selling cost) and therefore, forgoing appreciation (another 4%). You are going to need to pay another 2% in closing cost when you buy another house so that is a total of 12% in equity gone. But yeah, keep on eating your ribeyes and keep on telling yourself everything is going to be alright.

Your biggest problem is you speak on things that you have absolutely no idea what you are talking about.

I sold my house because I gained new employment 300 miles away from the home that I was living in. And you should note that the new employment that I did gain is a bonafide unicorn job. I was not willing to rent it out due to the area, and many other factors. I just purchased a new home that we move into this March.

And yes - I lost a total of 7k (I have already done the math).. But that is how the cookie crumbles sometimes and I’m not going to act like a victim
For loosing my job due to the company I worked for going out of business.

I rolled over my 401k, I pushed all money that I earned from home ownership into my new home.

And yes - I have a large student loan. It has never been a problem and I do not anticipate it being a problem in the future. Will I be a multi-millionaire upon retirement? Probably not, but We will be just fine. Life is good and that bugs you.

 

[PharmtoCS]

Its a good idea when you can predict the outcome but the risk is too high for my comfort. You'd need to beat at least 6.5% return (more if you took gradplus loans) and hope that you don't get caught by DOE for legal action.

Agreed...I would say that it's pretty much equivalent to gambling. Using student loans is especially risky since they're much more difficult to discharge compared to buying stock on margin.

Risking having a criminal record...no thanks.

 

[BMBiology]

Your biggest problem is you speak on things that you have absolutely no idea what you are talking about.

I sold my house because I gained new employment 300 miles away from the home that I was living in. And you should note that the new employment that I did gain is a bonafide unicorn job. I was not willing to rent it out due to the area, and many other factors. I just purchased a new home that we move into this March.

And yes - I lost a total of 7k (I have already done the math).. But that is how the cookie crumbles sometimes and I’m not going to act like a victim
For loosing my job due to the company I worked for going out of business.

I rolled over my 401k, I pushed all money that I earned from home ownership into my new home.

And yes - I have a large student loan. It has never been a problem and I do not anticipate it being a problem in the future. Will I be a multi-millionaire upon retirement? Probably not, but We will be just fine. Life is good and that bugs you.

That is the whole point - without adequate resources, you were not in the position to buy a house and hold on to it when things went south. You went ahead anyways and this is the result.

 

[JustFillIt]

That is the whole point - you were not in the position to buy a house. You went ahead anyways and this is the result.

That makes no sense... Which house? The one I just sold? What exactly do you think my position was?

Do you know me? Do you know how many hours I worked while I was a student? Do you know what my bank/investment account balances are? What exactly do you know about my “position”.

You posted some condescending garbage about intellect above. I would argue that a stark characteristic of low intelligence is assuming far too much.

BMs response here will be a perfect example of how he speaks of things that he has absolutely no idea about.

 

[BMBiology]

That makes no sense... Which house? The one I just sold? What exactly do you think my position was?

BMs response here will be a perfect example of how he speaks of things that he has absolutely no idea about.

I don’t need to know the full details. I know the result. It was a bad financial decision and you ended up losing your shirt.

 

[BMBiology]

Usually I don’t care when someone makes a bad financial decision but when you expect tax payers to bail you out, then it becomes an issue.

 

[JustFillIt]

Usually I don’t care when someone makes a bad financial decision but when you expect tax payers to bail you out, then it becomes an issue.

Gotcha... well I’ll send you a thank you card when my loan forgiveness kicks in.

 

[BMBiology]

Gotcha... well I’ll send you a thank you card when my loan forgiveness kicks in.

Don’t forget to pay your mortgage or you are going to lose this house too.

 

[JustFillIt]

Don’t forget to pay your mortgage or you are going to lose this house too.

Ok... I never lost a house - I sold it. And I have never missed a mortgage, rent, or auto payment in my life.

 

[owlegrad]

So moving for a job is the same as losing your house? Lol half decent trolling

 

[lord999]

That is the whole point - without adequate resources, you were not in the position to buy a house and hold on to it when things went south. You went ahead anyways and this is the result.

I somewhat disagree with this point. You have to live somewhere, and there are reasons to buy a house even if directly disadvantageous as there is utility in living in a home. Yes, there are capital considerations, but at worst, you just get foreclosed on and lose the equity, no worse than renting if the numbers are there. Where I live, it is cheaper to own and get foreclosed on than contract rent, and that's kind of why we have higher homeownership than the national average.

Now, the part that I agree with you is that most people overbuy the house where the rent to own ratio would have favored renting. And the risk of ownership is really that you are tied to the area in ways that are hard to dislodge depending on when the selling season is versus the jobs. The problem is that they rarely match.

 

[JustFillIt]

I somewhat disagree with this point. You have to live somewhere, and there are reasons to buy a house even if directly disadvantageous as there is utility in living in a home. Yes, there are capital considerations, but at worst, you just get foreclosed on and lose the equity, no worse than renting if the numbers are there. Where I live, it is cheaper to own and get foreclosed on than contract rent, and that's kind of why we have higher homeownership than the national average.

Now, the part that I agree with you is that most people overbuy the house where the rent to own ratio would have favored renting. And the risk of ownership is really that you are tied to the area in ways that are hard to dislodge depending on when the selling season is versus the jobs. The problem is that they rarely match.

I would add that I purchased a 3100 sq ft home for 249,000... it was about as financially responsible as you can get.

When I sold it, I sold it for 294,999... I also put 25k down upon purchase and made payments for 5.5 years on a 30 year mortgage.

 

[confettiflyer]

Funny, I always have a policy of paying for lunch. You'd be surprised at how cheap a bribe that is to get someone's time or to motivate performance out of your inferiors, but scarily, how influential the idea of breaking bread is and how difficult psychologically it is to antagonize someone who fed you. It works with other primal functions as well.

Starbucks runs are picked up by technicians or interns and it’s Pharmacy Rule #1 that the pharmacists pay.

Caffeine is great for productivity and social adhesion!


Sent from my iPhone using SDN

 

[confettiflyer]

Usually I don’t care when someone makes a bad financial decision but when you expect tax payers to bail you out, then it becomes an issue.

Is it a bad financial decision to externalize risk and exploit a taxpayer funded program beyond original legislative intent?

 

[BMBiology]

Is it a bad financial decision to externalize risk and exploit a taxpayer funded program beyond original legislative intent?

Don’t count your chickens before they hatch. The only real benefit is PSLF. All other income based repayment programs require you to pay tax on the forgiven amount. So the more is forgiven, the bigger the tax bill.

 

[BC_89]

I'll play the minority here because though I do not agree with everything Ramsey says I do take into consideration and agree with some of his major points. Main ones being credit card and student loan debt vs potential income. Also having a proper savings and aggressive investing (or at least to what the company will match).

Going 200k in debt for a job that pays half of this in a competitive job placement makes....no.....sense. I went to a university that allowed me to pay a majority of my debt and then joined the service to alleviate any remaining debt AND to secure a GI Bill to pay for all of my future schooling (I was overzealous in the service and pride got the best of me but the concept is the same). I got paid for experience instead of rushing to higher education.

It is not a one glove fits all scenario, but thanks to some of Dave Ramsey quotes (not all) I am well on my way to staying debt free.

 

[confettiflyer]

Don’t count your chickens before they hatch. The only real benefit is PSLF. All other income based repayment programs require you to pay tax on the forgiven amount. So the more is forgiven, the bigger the tax bill.

Thanks for answering the question


Sent from my iPhone using SDN